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Just a quick update on the story we posted yesterday about an Xbox 360 Arcade model with 512MB of built-in memory; it’s true! Microsoft confirmed with Eurogamer a wee bit ago.

“The Xbox 360 system software uses some of the included 512MB memory; less storage will be available to users. Additional storage (sold separately) may be needed for game saves, Xbox LIVE Arcade games, content downloads, personal file storage, and additional enhanced functionality. A hard drive is recommended for LIVE, and is required for some features,” the company said in a statement. “We want to offer consumers a bit more memory at the same low price so they can enjoy more experiences on Xbox LIVE.”